Sebi Chair Says Finfluencer Rules are Clear Amid Ongoing Misinformation Risks

On December 12, 2025, Securities and Exchange Board of India (Sebi) chairperson Tuhin Kanta Pandey stated that the regulator’s rules governing finfluencers are clear and enforceable. He emphasised that Sebi must balance fundamental freedoms with the need to address misinformation circulating on social media platforms.

His comments followed recent action against a finfluencer entity barred from market participation and facing impounded gains. The regulator said it has examined stakeholder views and continues to refine monitoring and disclosure mechanisms to protect investors and market integrity.

Policy Stance on Finfluencers and Investment Advice

Pandey said there is no ambiguity about what constitutes investment advice under the existing regulatory framework. He noted that several pump‑and‑dump investigations have identified finfluencer involvement, prompting closer scrutiny of market communication.

The regulator has strengthened surveillance of both stock activity and social media to flag unusual patterns and potential manipulation. The stance underscores that content crossing into investment advice without registration may invite action under applicable Sebi regulations.

Recent Enforcement and Market Actions

Sebi recently barred Avadhut Sathe and Avadhut Sathe Trading Academy from participating in the securities market and impounded ₹546.16 crore in alleged unlawful gains. The action was based on findings that unregistered investment advisory and research services were offered under the label of stock‑market education.

The case highlights Sebi’s focus on misrepresentation and the misuse of educational formats to provide de facto advice. It also signals that enforcement will target entities whose communications influence trading behaviour without compliant registrations.

Balancing Rights, Education and Public Interest

The chairperson acknowledged the public’s right to access information online and the importance of legitimate educational content. He said there is a clear line between education and investment advice, and Sebi is increasingly equipped with tools to distinguish when that line is crossed.

The regulator seeks to respect freedom of expression while mitigating harms arising from deceptive or unsubstantiated claims. The framework aims to protect market participants without unduly restricting genuine education and research communication.

Read More: SEBI Bars Avadhut Sathe Academy for Unregistered Advisory.

Conclusion

Sebi’s latest remarks reinforce that the regulator’s framework for finfluencer conduct remains defined and enforceable across online channels. The combination of continuous surveillance, verified disclosures and targeted enforcement is designed to deter unlawful advice and market manipulation.

The approach balances rights to information with safeguards against misleading content that can affect investor decisions. Ongoing reviews and measured rule‑making indicate a focus on proportionate regulation aligned with market stability and investor protection.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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